Banking, Financial and Economic Awareness of 28, 29 and 30 September 2021

Topic: Appointments

1. Government selects Captain Alok Mishra as MD of India Ports Global Ltd.

• Government has selected Captain Alok Mishra as MD of India Ports Global Ltd.
• Appointments Committee of the Cabinet (ACC) has cleared his candidature. He will have a five-year tenure in the new role.
• India Ports Global Ltd is tasked with developing and running of India-funded Chabahar port in Iran.
• Chabahar port is located in Sistan-Baluchistan Province on Iran’s south-eastern coast (outside Persian Gulf). It provides India a sea-land access route into Afghanistan and Central Asia.
• Chabahar is also being constructed as a gateway to the East and West of the Caspian Sea as part of International North-South Transport Corridor (INSTC).

Topic: Miscellaneous

2. Seven corporations formed by splitting the Ordnance Factory Board (OFB).

• Seven corporations have been formed by splitting the Ordnance Factory Board (OFB).
• Defence Ministry has announced the names of the corporations. They will control 41 factories under OFB.
• The names of seven corporations are Munitions India Ltd, Armoured Vehicles Nigam Ltd, Advanced Weapons and Equipment India Ltd, Troop Comforts Ltd, Yantra India Ltd, India Optel Ltd and Gliders India Ltd.
• New corporations will start functioning from October 1. The Centre has decided to transfer all OFB employees to the new corporations on terms of foreign service without any deputation allowance initially for 2 years.
• Ordnance Factory Board consists of Indian Ordnance Factories. It is headquartered in Kolkata. C S Vishwakarma is its chairman.

Topic: MoUs/Agreements

3. AU Small Finance Bank and NABARD sign MoU to boost ongoing rural development initiatives in Rajasthan.

• AU Small Finance Bank and NABARD have signed MoU to boost ongoing rural development initiatives in Rajasthan.
• MoU was signed in presence of Sanjay Agarwal, Managing Director, AU Small Finance Bank, NABARD Chairman G R Chintala and Jaideep Srivastava, Chief General Manager, Rajasthan.
• The memorandum envisages a joint initiative to help farmers, Farmer Producer Organisations (FPOs), Self Help Groups (SHGs), rural artisans, agri-entrepreneurs, and agri-startups in the State.

Topic: Taxation System

4. Group of Ministers (GoM) formed to review the current rate structure of GST and recommend rationalisation measures.

• A GoM has been formed to review the current rate structure of GST and recommend rationalisation measures.
• The GoM will be led by the Chief Minister of Karnataka, Basavaraj S Bommai and submit its report within two months. The GoM will review current tax rate slabs.
• The GoM will also review the supply of goods and services exempt under GST to expand the tax base and eliminate the breaking of ITC (input tax credit) chain. It will also review inverted duty structures.
• 5, 12, 18 and 28 % are currently four main rates under GST. There are special rates of 0, 0.25, 1 and 3%.
• Another GoM has been set up under the convenorship of Deputy Chief Minister of Maharashtra, Ajit Pawar. This GoM will suggest ways for GST System Reforms.
• It will review IT tools and interface available with tax officers and then suggest measures to make the system more effective and efficient.

Topic: Banking/Financial Schemes

5. The timeline of Emergency Credit Line Guarantee Scheme (ECLGS) extended by Finance Ministry.

• The timeline of the Emergency Credit Line Guarantee Scheme (ECLGS) has been extended by Finance Ministry till March 31, 2022 or till guarantees for an amount of ₹4.5-lakh crore are issued under the scheme, whichever is earlier.
• The deadline for disbursement under the scheme has also been extended to June 30, 2022. Finance Ministry has introduced other modifications to the scheme.
• Existing borrowers under ECLGS 1.0 and 2.0 have been made eligible for additional credit support of up to 10 % of total credit outstanding as of February 29, 2020 or March 31, 2021, whichever is higher.
• If a business has not availed assistance under either of the ECLGS, it can avail credit support of up to 30 % of its credit outstanding as of March 31, 2021.
• If a business is specified in the sectors under ECLGS 3.0 and it has previously not availed ECLGS, it can get credit up to 40 % of its credit outstanding as of March 31, 2021 to the maximum of ₹200 crore per borrower.

Topic: Indian Economy

6. Government extends Foreign Trade Policy (FTP) 2015-20 by another six months.

• Government has extended Foreign Trade Policy (FTP) 2015-20 by another six months.
• The policy will remain now in force up to March 31, 2022 instead of September 30, 2021.
• The announcement of the new five-year FTP was earlier postponed by a year till April 1, 2021 and then for another six months till September 30.
• Commerce and Industry Minister Piyush Goyal said that India’s exports are on the track of achieving a target of $400 billion set for 2021-22.
• In 2020-21, India’s exports stood at $292 billion. This was about 7% lower than exports in the previous fiscal.

Topic: Regulatory Bodies/Financial Institutions

7. SEBI decides to relax eligibility requirements related with superior voting rights (SR) framework.

• Securities and Exchange Board of India (SEBI) has decided to relax eligibility requirements related with the superior voting rights (SR) framework.
• The net worth threshold for a promoter to hold superior voting rights (SR) has been extended.
• SR shareholder (as an individual) should not have a net worth of more than ₹1000 crore.
• On 28 September, SEBI has allowed startup founders with a personal net worth of up to ₹1000 crore to get superior voting right shares.
• The minimum gap between issuance of superior voting rights shares and filing draft red herring prospectus (DRHP) or offer document from six months to three months.

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